Net Zero Hydrogen Fund DEVEX and CAPEX competitions

Funding competitions providing support for new low carbon hydrogen production facilities.

The Department for Energy Security and Net Zero (DESNZ) has launched new funding rounds under Strands 1 and 2 of the Net Zero Hydrogen Fund (NZHF).

The aim of NZHF is to provide capital expenditure (CAPEX) and development expenditure (DEVEX). This will support the commercial deployment of new low carbon hydrogen production projects during the 2020s.

This is to ensure the UK has a diverse and secure decarbonised energy system fit for meeting our ambition of up to 10GW low carbon hydrogen production by 2030, and will help us reach our commitment to reach net zero by 2050.

There are four strands to NZHF and new funding rounds have been launched under two of these:

Strand 1 Development Expenditure Round 2

Strand 1 of NZHF will provide DEVEX support for front end engineering design (FEED) and post-FEED studies for new low carbon hydrogen production facilities. The aim is to build the pipeline of hydrogen production projects and measurably move them closer to deployment.

It supports the following hydrogen production pathways as listed in the Low Carbon Hydrogen Standard Version 2 (LCHS v2):

• electrolysis
• natural gas reforming, with carbon capture and storage (CCUS)
• biomass or waste conversion to hydrogen, with or without CCUS

Your project’s total grant request must be between £80,000 and £10 million.

Find out more about Strand 1 Development Expenditure Round 2 and how to apply.

Strand 2 Capital Expenditure Round 2

Strand 2 of NZHF will provide CAPEX support for new low carbon hydrogen production facilities to begin deployment in the early 2020s.

Your project must not require support from a hydrogen production business model as these projects are covered in Strands 3 and 4 of NZHF.

It supports the following hydrogen production pathways:

• electrolysis
• biomass or waste gasification

Your project’s total grant request must be between £200,000 and £20 million.

Find out more about Strand 2 Capital Expenditure Round 2 and how to apply.

Online briefing event

Innovate UK and Innovate UK KTN will be hosting an online competition briefing webinar on behalf of DESNZ on Wednesday 19 April 2023 to share details of round 2 of NZHF strands 1 and 2 - register now.

First published 14 April 2023